County executive to release operating budget Monday

Leggett vows not to increase taxes in budget

County Executive Isiah Leggett is set to release his fiscal 2010 operating budget recommendation Monday following months of discouraging economic news and warnings of possible cuts in programs and services as well as employee furloughs and layoffs.

Like many jurisdictions in the region, the county is facing a multimillion-dollar deficit as tax revenues have declined during the national recession. Last month, the county's deficit jumped to $520 million, on revenue write-downs of $70 million.

Leggett (D) has repeatedly said he would not raise taxes in his recommendation for the budget that begins July 1. He also has said he would not rely on possible stimulus funds headed to the county to balance his budget.

With both the executive and County Council members warning of "tough choices" and "deep cuts," Leggett's budget recommendation is set to resolve, pending council approval, some outstanding funding issues, including cost-of-living raises for county employees and a proposed ambulance fee.

Leggett is expected to get agreement from the county's three employee unions to forgo negotiated COLA raises next year. The action is expected to save $36 million in personnel costs next year.

Officials of the county's fire union announced a deal in January with Leggett to forgo some vacation pay and defer COLAs, but the county executive said the announcement was premature and a final deal had not been reached.

Members of the schools unions already have agreed to give up their COLAs next year, saving $89 million.

Last week, seven council members — minus Councilman Marc Elrich — asked Leggett not to include a proposed ambulance fee in his budget recommendation. The executive included the recommendation last year as a way to fund fire and rescue services, but the council rejected the idea.

Council President Philip M. Andrews has been the most vocal critic of the ambulance fee, which Leggett said would generate $14 million in annual revenues.

"There was no reason to include the revenues for a fee at this time," said Andrews (D-Dist. 1) of Gaithersburg about the letter.

Elrich said excluding the fee at this time, when the revenue situation has worsened, might not be a good idea.

"If he took out the $14 million, he'd also have to take out $14 million in cuts," said Elrich (D-At large) of Takoma Park. "I'm sure my colleagues don't want to do it; they'd rather him do it. We're at the point now where we'll actually be cutting things we have no choice to cut."

In addition to the operating budget, the council will vote on Leggett's recommended construction budget in May.

The county did receive some good economic news Tuesday. The Housing Opportunities Commission is expected to receive $3.1 million in federal stimulus funding in April. The money will be used for upgrading housing units throughout the county.